Hindalco Industries Limited

Media Meet Presentation - 26 July 2018

Hindalco Industries Limited |July 2018 EXCELLENCE BY DESIGN 2

Hindalco to acquire for US$ 2.58 Bn

through its wholly owned subsidiary Novelis Inc

Next Leap forward of our Global Value Added Products Growth Strategy

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018

Business Highlights

3

WHERE ARE WE?

Leading Global Industry Player

Hindalco Industries Ltd

Aluminium Copper

Alumina

Primary Metal

VAP including Wire Rod

2.9 mt

1.3 mt

479 Kt

Copper Cathode

Copper Rods

410 Kt

156 Kt

Aluminium Downstream

#1 Rolled Products Supplier Worldwide

Global Presence

Global Leader in Aluminium Recycling

Shipments

Focused on Premium Segments

3.2 mt

NovelisLargest aluminium

FRP producer globally

Aditya and Mahan

1st quartile cost producer of Aluminium

Utkalamongst the lowest cost

producers of Alumina in the

world

One of the

largest custom Copper smelter at single location in

Asia

Global operations across

11 countries

Revenue of

US$ 18 billion EBITDA of

US$ 2.2 billion ~35,000

employees across the world

DAP 205 Kt

The Above Numbers are for FY18 ; mt – Million Tons ; Kt – ‘000 Tonnes

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 4

KEY AGREEMENT TERMS

DEFINITIVE AGREEMENT

• Signed definitive agreement - EV of US$ 2.58 billion

• US$ 775 million in cash for the equity component plus the assumption of debt

• Deal Expected to close in 9 to 15 months

• Earn-Out linked to achievement beyond base business plan during CY18-20 for North America with a

cumulative cap of US$ 50 million

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 5

ALERIS : GLOBAL ALUMINIUM ROLLED PRODUCT SUPPLIER

o Global supplier of Aerospace and

Automotive Aluminium rolled

products

o Leaders in Building & Construction

and Truck Trailer segment in North

America

o Significant multi-year agreements

with global blue chip customers

o Recent investment to drive earnings

and cash flow momentum

o High capability manufacturing

facilities

313~5400~ 800 kt $3 bn

Shipments Revenue Employees Operations Continents

Note : The above numbers are for CY 2017

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 6

WORLD’S NO.1 ALUMINIUM DOWNSTREAM PLAYER

~ 1.0 mt

~ 3.3 mt

~ 0.4 mt

Post acquisition, expected value added product capacity at over ~ 4.7 million tonne/annum (incl. India)

24 manufacturing locations across 4 continents with

~11,000 employees

13 manufacturing locations across 3 continents with

~5,400 employees

6 Aluminium VAP manufacturing locations

in India

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 7

KEY HIGHLIGHTS OF ACQUISITION

Strategic Rationale

• Diversifies product portfolio - addition of high-

end Aerospace

• Enhances and complements Asia operations

• Strengthens ability to meet automotive demand

Leverage (Net Debt /EBITDA)

Novelis + AlerisHIL

Consolidated

At Closing

After 2 years

<4x

~3x

< 3.5x

< 3x

Funding

100% Debt

Cusp of Growth

Investment of ~ US$ 900 million over past 5 years

Aleris poised for transformational growth

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 8

PRODUCT PORTFOLIO DIVERSIFICATION & ENRICHMENT

Can61%

Auto20%

Specialties19%

Novelis - Now Novelis Pro-Forma Run Rate

Can47%

Auto22%

Specialties19%

B&C, Truck Trailer

8%

Aero4%

Enhanced product mix with addition of Aerospace and Building & Construction (B&C) Increased share of high margin products

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 9

ENTRY INTO NEW SEGMENT - AEROSPACE

o Novelis to enter high-end aerospace

segment

• Well established manufacturing

capabilities

• R&D in Aleris - Koblenz, Germany

o Long-term contracted business with blue

chip-customers

Key Customers

World-class Aerospace plate facilities in Europe and Asia

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 10

STRENGTHENS OUR COMPETITIVE POSITIONING IN ASIA

o Novelis recently announced 100 kt Auto expansion in

China taking the overall capacity to 200 kt

o Enhances our competitive position in Asia :

• Aleris’ recently commissioned Zhenjiang facility is

Located close to Novelis facility in Changzhou

Enhances Existing Asia Footprint for Growth

AlerisZhenjiang

Novelis Changzhou

Asia

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 11

AUTO LEADERSHIP – STRENGTHENS ABILITY TO CAPTURE GROWTH

o Enhances ability to innovate and compete against steel

o Diversifies automotive customer base and vehicle

platforms

o Larger asset base mitigating risks

Lewisport, Kentucky

Oswego, New York

Kingston, Ontario

Sierre, Switzerland

Nachterstedt, Germany

Duffel, Belgium

No

velis

Ale

ris

Expands asset base and diversifies customer portfolio

Broke ground May 2018Guthrie, Kentucky Changzhou, China

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018

Indian Demand Hindalco

12

BENEFITS FOR INDIA VALUE ADDED PRODUCTS BUSINESS

Skillset

Training

Technology

Focus on growth in FRP, Foil, Extrusions

Key Success Factors

Consumption dominated by Electrical Segment

Growth expected in FRP and Extrusions

Aluminium VAP production to Double in next 5 years

Building & Construction

Transport & Auto

Railways

Solar

Aerospace & Defence

Access to Aleris manufacturing capabilities - helps in Building & Construction and Transport segments

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 13

ACCELERATING OUR GROWTH

Attractive Valuation

EV

Expected EBITDA

Multiple

US$ 2.58 bn

US$ 360 mn

7.2x

To Create a ~US$ 21 Billion Company by Revenue

Strong Financial Profile

Leverage (Net Debt /EBITDA)

Novelis + Aleris

HILConsolidated

At Closing

After 2 years< 4x

~3x

< 3.5x

< 3x

Potential Synergy

~ US$ 150 mn

Integration in AsiaSupply Chain

SG&A Optimization

Further strengthen our leading position

Solidify the global position

Diversified Product Mix

+

Access to technology for B&C and Truck Trailer products to help in India operation

EXCELLENCE BY DESIGNHindalco Industries Limited |July 2018 14

SAFE HARBOUR

Certain statements in this report may be “forward looking statements” within the meaning of applicablesecurities laws and regulations. Actual results could differ materially from those expressed or implied.Important factors that could make a difference to the company’s operations include global and Indiandemand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand andpricing in the company’s principal markets, changes in Government regulations, tax regimes, economicdevelopments within India and the countries within which the company conducts business and other factorssuch as litigation and labour negotiations. The company assume no responsibility to publicly amend, modifyor revise any forward looking statement, on the basis of any subsequent development, information orevents, or otherwise.

Thank You